Is It “Performa Invoice” or “Proforma Invoice”? Understanding this distinction is essential in international trade and business. These terms, often used interchangeably, describe a specific type of invoice that precedes a commercial transaction, but there is a subtle yet significant difference between them.
A performa invoice serves as a quotation or estimate of charges for goods or services to be provided, while a proforma invoice is an official document used primarily for export transactions. It outlines the terms of sale, including the quantity, price, and delivery details. Historically, proforma invoices were physical documents, but today, they are commonly issued electronically.